XTO’s Earthquake Show Cause Hearing

Yesterday the Texas Railroad Commission held the first of two scheduled show cause hearings called by the RRC to determine whether two salt water disposal wells near Azle, Texas should be shut down because they caused earthquakes in the area. The earthquakes in that region of Parker County are the subject of a recently published study by scientists at Southern Methodist University, which concluded that the quakes were probably caused by the injection wells. One of the wells is owned by XTO Energy, the other by Enervest. Enervest’s show cause hearing is scheduled for next week.

The XTO hearing was before two hearings examiners, Marshall Enquist and Paul Dubois. Hearings examiners act as administrative law judges in RRC hearings; they then propose a decision to the three commissioners, who can either accept or reject their proposed decision.

Only XTO appeared at the hearing, represented by their attorney Tim George, who called three witnesses and introduced more than 30 exhibits. XTO argued that the earthquakes were natural phenomena not caused by their injection activities. No witnesses appeared to oppose XTO’s position. A staff attorney at the RRC did ask some questions of XTO’s witnesses and offered the SMU study as evidence, over XTO’s objection. Tim George argued that the study was hearsay and that the scientists were not available to be cross-examined on the study. Marshall Enquist admitted the study as evidence over George’s objection, saying “in a way, [the SMU study] is why we’re here today.”

When the commissioners voted on whether to call the show cause hearings for XTO and Enervest, Ryan Sitton, the newest commissioner, opposed the order. Sitton organized a panel discussion on the SMU study at the RRC that took place last Friday, at which the SMU scientists, as well as scientists from UT, the RRC seismologist, and representatives of Enervest appeared. Sitton acted as moderator, but the other two commissioners did not attend. Enervest also argued in that panel discussion that its disposal well did not induce seismic activity, and that the SMU study is flawed.

Following the show cause hearing, the two examiners will write a proposal for decision that will be submitted to the commissioners.

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